Salt Lake Potash Limited (ASX: SO4)

SO4 is an Australia-based engaged in the exports of Potash Sulphate. It is involved in exploring and developing potassium salt lakes in Northern Territory and Western Australia. On 30th November 2021, the company received deferral of all company’s financial reporting obligations under the ASIC Corporations Instrument until at least 20th April 2022.

Voluntary Suspension & Insolvency: On 7^th of October 2021, the company applied for voluntary suspension, which was extended to 21^st October 2021, awaiting some announcement. Later to that, on 20^th October 2021 the company’s directors resolved that the companies were insolvent or likely to become insolvent in some unexpected future and suggested to appoint administrators. On 20^th October 2021, Receivers and Managers were appointed for the same. On 10^th March 2022, it announced that the receivers will commence the process of selling the company’s flagship Lake Way Project or will recapitalise the company jointly with Macquarie Capital, and they are willing to seek interested parties.

Business and FY21 Financial Updates – Recently, the company reported a 108% increase in Measured Mineral resources for the Lake Way Project with an upgrade of Indicated Mineral resources for the Project, up by 156% to 2.30Mt of Potassium. As of 30th June 2021, SO4 held $69.44 million in cash balance (FY20: $7.03 million) and net assets of $251.90 million (FY20: $60.13 million). The net asset surge was essentially as a result of $202.15 million in capital raising for the construction and ongoing development of the Lake Way Project.

Technical analysis: As the stock traded last on ASX on 27^th July 2021 at $0.310, therefore due to lack of its historical data, the technical analysis is not valid.

Conclusion: As the company resolved for insolvency, sell of their flagship project and due to the non-availability of the company’s historical price charts, it leaves the investors with the uncertainty at the moment.

Briscoe Group Australasia Limited (ASX: BGP)

BGP is a New Zealand-based company that provides management services to its subsidiaries. The company’s operating segments include sporting goods and homeware. Briscoes Homeware holds 40 stores in New Zealand with an online presence. The company offer its products under the brands namely, Briscoes Homeware, Rebel Sport, and Living & Giving.

Operational Update: On 30^th March 2022, BGP confirmed that it has complied with and continues to comply with the Listing Rules of NZX Limited - home exchange, under the ASX Listing Rule 1.15.3. The company also mentioned in the Annual Report that it is registered in Australia as a foreign company as Briscoe Group Australasia Limited and is exempted from complying most of the ASX listing rules and should comply with NZX.

FY22 Financial Update – For the period ending January 30, 2022, BGP delivered a record NPAT of NZ$87.91 million, up by 20.10% on the NZ$73.20 million reported in FY21. The earnings were mounted on the sales revenue of NZ$744.4 million, up by 6.08% from the NZ$701.8 million generated in FY21. After adjustments for an additional week, the sales grew by 7.97% for the year ended 30th January 2022. The gross margin surged to 45.76% from 43.76% reported in FY21. During the year, nearly NZ$19.9 million of capital investment was concluded, of which NZ$9.83 million represented the development of property owned by the business.

Technical analysis: Due to lack of historical data, as last trading date was on 22^nd December 2021 at $4.840, the technical analysis on the scrip is not valid.

Conclusion: Off late, there was no trading on the shares of BGP on the ASX exchange, although it remained active on the NZX exchange. The company continue to comply with NZX exchange norms. Together with this, it is adding uncertainty at the current juncture.

Note 1: The reference data in this report has been partly sourced from REFINITIV

Note 2: Investment decisions should be made depending on the investors’ appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the analysis has been achieved and subject to the factors discussed above alongside support levels provided.

Disclaimer - This report has been issued by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and prepared by Kalkine and its related bodies corporate authorised to provide general financial product advice. Kalkine.com.au and associated pages are published by Kalkine.

Any advice provided in this report is general advice only and does not take into account your objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Statement or other offer document for the securities or other financial products referred to in Kalkine reports. You should obtain a copy of the relevant Product Disclosure Statement, Information Statement or offer document and consider the statement or document before making any decision about whether to acquire the security or product.

You should also seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice in this report or on the Kalkine website. Not all investments are appropriate for all people.

The information in this report and on the Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of information contained in its reports, newsletters and websites. All information represents our views at the date of publication and may change without notice.

Kalkine does not guarantee the performance of, or returns on, any investment. To the extent permitted by law, Kalkine excludes all liability for any loss or damage arising from the use of this report, the Kalkine website and any information published on the Kalkine website (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine hereby limits its liability, to the extent permitted by law, to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

On the date of publishing this report (referred to on the Kalkine website), employees and/or associates of Kalkine and its related entities do not hold interests in any of the securities or other financial products covered on the Kalkine website unless those persons comply with certain safeguards, procedures, and disclosures.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.